The China Question

www.worldecr.com 2 ThE ChInAquESTIOn CHINA C hina’s relationship(s) with the rest of the world is set to define the global economy, geopolitics, climate change, technological advances for the foreseeable future. And trade control practitioners will have an up- close view of sometimes pivotal changes for the duration. What role will human rights issues play in US and EU trade with China? What will be the consequences of export controls for technology, good and ill? How will companies adapt to changing markets as restrictions start to bite? None of these questions is easily answered. But in this Special Report, WorldECR Contributing Editor Anwar Faruqi sets out contexts: China’s long-held ambition to ‘surpass’ the United States; US determination to thwart it; China’s retaliatory steps… And in a series of Insight articles, leading trade regulation and compliance experts look at the specifics of legislation – sometimes easier to pass than to parse – and the steps that companies doing business globally need to take to stay compliant. Tom Blass, Editor, WorldECR July 2021 1 THECHINAQUESTION THECHINAQUESTION AWORLD SPECIAL REPORT ecr CONTENTS 3 THE CHINA QUESTION China has set its sights on being the world leader in technology by the year 2025, an ambition that seriously worries the US government. Among the latter’s various responses to the challenge have been a raft of regulations, sanctions and export controls designed to slow the PRC’s progress. WorldECR examines what it all means for business. 15 FIRRMA gRIp Tightening controls on investment into critical industries is seen as key to slowing down Chinese advancement in the US and other countries. 20 RUlE OF lAw China’s new Export Control Law and an Anti-Sanctions Law are designed to strengthen its hand in its battle of ambitions with the United States. How will they impact international trade? INSIgHT 24 Importing from China – is your due diligence sufficient? By Peter Jeydel and Meredith Rathbone, Steptoe & Johnson LLP 26 Biden Administration rejects targeted actions against TikTok and weChat in favour of sweeping regulatory review of ICTS transactions By Barbara D. Linney and Orga Cadet, BakerHostetler 28 growing pressure on US universities to police against Chinese influence By David A. Ring and Tahlia Townsend, Wiggin and Dana 31 China’s Export Control law: 10 steps to setting up a compliance programme By Steven Brotherton and Elizabeth Shingler, KPMG LLP 34 The growing and continued focus on Chinese investment in CFIUS reviews By Ryan Fayhee, Roy Liu and Tyler Grove, Hughes Hubbard & Reed Information in this publication is not to be considered legal advice. Opinions expressed within are not to be considered official expressions of the publisher nor the authors or their firms. The publisher assumes no responsibility for errors and omissions appearing within. For further information or to request copies, please contact Mark Cusick - mark.cusick@worldecr.com © D.C. Houghton Ltd 2021. ISSN 2046-4797. Correspondence address: D.C. Houghton Ltd, Suite 17271, 20-22 Wenlock Road, London N1 7GU, England D.C. Houghton Ltd is registered in England and Wales (registered number 7490482) with its registered office at 20-22 Wenlock Road, London, UK